Can a municipality borrow funds on a short-term basis to meet cash flow needs until its tax revenue comes in?
A. Yes, the Local Government Unit Debt Act authorizes a municipality to borrow funds on a short term basis to meet cash flow needs. The amount borrowed must be repaid during the current fiscal year and cannot exceed 85% of total revenues and must be within the limits of the maximum cash flow deficit calculation.
Related Questions
- Can a municipality borrow funds on a short-term basis to meet cash flow needs until its tax revenue comes in?
- My organization needs to borrow funds in an amount greater than NCCLF’s loan limit. Can NCCLF still help us?
- WHY DO WE NEED A UNITED WAY - DOESNT THE GOVERNMENT MEET THE NEEDS WITH TAX DOLLARS?
